Business
23:01, 13-Sep-2017
ChiNext demands Leshi explain payoff of loans from founder
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ChiNext, China’s start-up bourse under the Shenzhen Stocks Exchange, has demanded that listed company Leshi Internet Information and Technology Corp Beijing, a subsidiary of cash-strapped Chinese tech conglomerate LeEco, explain why it payed off loans from the founder Jia Yueting in advance of the mature date, news website thepaper.cn reported on Wednesday.
Back in 2015, Jia Yueting and his sister Jia Yuefang, who is also a shareholder of Leshi, promised to lend their income from selling stocks of Leshi as interest-free loans for five years, according to the company’s statements released in October 2015.
According to statements, Leshi should have received more about 7.3 billion yuan from Jia Yueting and Jia Yuefang in the past three years when the two shareholders received 5.7 billion yuan and 1.7 billion yuan respectively from selling their shares in Leshi, the report said.
However, from 2015 to now the two major shareholders only lent 3.9 billion yuan in total to Leshi, according to the company’s half year report of 2017.
Moreover, the January to June report also showed that Leshi has already paid off the two shareholders’ loans. Even there seems no need to do so, especially when the company and its parent company LeEco faced with a serious cash shortage.
ChiNext required Leshi to submit the specific date, capital volume and reasons to pay off Jia Yueting and explain if Jia Yueting broke his loan promises and why, according to the formal notice quoted in the report.
Leshi should submit all related materials to ChiNext and Beijing Securities Regulatory Bureau, the ChiNext notice said.
It is not the only capital-related discussion that LeEco conglomerate involved in recently.
Another two subsidiaries of LeEco, Leshi Holding (Beijing) Co and LeTV Mobile & Intelligent Information Technology (Beijing) Corp, were put on China's highest level credit default blacklist on September 7 because both companies have the ability to honor obligations but refuse to do so.